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Marriott

foreclosure

Timeshare Foreclosure

In yesterday’s article “Start the Week”, we had a look at the resale market in Europe, or the lack of it. We highlighted one resale company Fab Timeshare Resales, who specialise in Marriott resale. The prices advertised on their website started at a paltry 1000€ or $1,180 for a timeshare which starts at 17,000€ or $21,000 according to the Marriott website.

Today Irene Parker looks at the growing problem in the US of foreclosure and defaults, which may just be partly due to the lack of the resale or secondary market, but first a little more news from Europe.

here we go again

Last week in Friday’s Letter from America, we published the news released by Canarian Legal Alliance on their 60th Supreme Court ruling. Yesterday they announced another, which is now 61!

In this ruling it is yet again the Tenerife company Silverpoint, which bring rulings from Spain’s Highest Court against them to 22. The judges in this instance ruled the contract null and void with the return of over £43,000 plus legal fees and legal interest. We are still waiting for the actual infractions of the law to be released, but going by past judgements it will more than likely be the duration of the contract being more than 50 years.

alert

On the “scam” front, mindtimeshare have again highlighted another rather clever little ploy coming out of the Costa del Sol. This company is called Joint Returns Legal Consultants, who have apparently been appointed by the High Court to inform consumers that a case has gone through and the court is now holding money to be returned.

Obviously as with all these “scams”, there is a “TAX” to be paid and the “gentleman” on the phone going by the name Peter Sanchez, send emails confirming the story with letter headings from “Agencia Tributaria”. All this along with confirmation from the BBVA (Bank) and a Notary it all seems very plausible.

Telephone numbers:

Tel.: +34 632844887. Fax: 0872 113 1069

Email jointreturns@gmail.com

This really does go to show some of the lengths these people will go just to get your money, we have said this before and we will continue to issue the same warning.

THE COURTS DO NOT APPOINT PRIVATE COMPANIES TO INFORM CONSUMERS THAT MONEY IS BEING HELD. THERE ARE NO CASES AT COURT UNLESS YOU HAVE INSTIGATED THEM YOURSELF. DO NOT PAY ANY MONEY ESPECIALLY BY BANK TRANSFER TO AN INDIVIDUAL.

Now for today’s main article from Irene.

Timeshare Foreclosure

Is it survivable?

graph

By Irene Parker

September 26 2017

Inside Timeshare received five more complaints over the weekend. This makes over 150 timeshare complaints received. The rise in timeshare default rates reported by bond rating agencies and the lawsuits that have ensued as timeshare developers try to stop the flow of “Cease and desist” letters prove we are not imagining a crisis.

  1. Would you buy a house you could not sell?
  2. Would you buy a boat or car you could not sell?
  3. Would you pay $25,000 to over $500,000 to join a country club you can’t quit?

According to Bankrate

Avoid developer financing

Lenders won’t mortgage a time share because they haven’t been successful in resales or in their valuation, says Patricia Hayhurst, mortgage consultant for Capital Bank in Coral Gables, Florida. “They are considered high-risk lending.”

http://www.bankrate.com/finance/loans/timeshare-loans-primer.aspx

Our own Lisa Ann Schreier was quoted in the article.

“Most (consumers) I hear from are using the developer’s financing as they are unaware of any other alternatives,” says Lisa Ann Schreier, founder of the consumer consulting company Timeshare Insights in Clermont, Florida. “If a consumer can obtain a personal loan (elsewhere) for the time share, the interest rate can be significantly lower as typical developer financing runs 15% to 19%.”

The problem is this is how sales are made. “When you get home, get a home equity loan,” is a common suggestion as it gets the developer off the hook once the buyer realizes they cannot afford the timeshare. Rather than sign off on a high interest rate loan on the spot, demand that you have time to check with your bank or credit union to find out if such statements are true and if you qualify.

Financial journalist Robert Shaw in his 2016 Seeking Alpha article, “Does timeshare need a millennial act to attract new buyers?” questions the industry’s over reliance on upgrading or up-selling existing buyers.

Since an existing owner is familiar and already pleased with the product, sales to existing owners are typically much easier to close. It is hard to visualize an existing owner who is totally dissatisfied with their current ownership sitting through a 90-minute sales tour.

sales pitch

Based on the accounts heard by those reaching out to Inside Timeshare, the reason the upgrade is easy to close, is because of deception on the front end of the timeshare sales, offering buy-back and resale programs that do not exist, or ways to offset maintenance fees to those already financially burdened that do not exist.

Mr. Shaw also feels timeshare is no longer sold as an investment. Yes it is. Buy now because the price is going to double refers to the retail price, not the resale price, yet over and over we hear this repeated as the reason the member purchased additional points. Not one member who has contacted Inside Timeshare realized their contract was perpetual and there was no secondary market.

Timeshare is definitely not a real estate investment and apart from the occasional overzealous sales associate, timeshare companies long ago stopped pitching it as such an investment. Yet, its lack of being a real estate investment may make it less attractive to newer, younger buyers who are wanting value and the ability to sell it when they no longer want or need it.

https://seekingalpha.com/article/3991819-timeshare-need-new-act-attract-millennial-buyers

At least Mr. Shaw questions the concerns expressed by timeshare insiders. Most financial news services merely want to justify the buy on the stock price.

The Foreclosure process is gruesome. There will be threatening calls and the hit on your credit score. We are not attorneys and cannot give legal advice, but the Nolo article about timeshare foreclosure is one of the best articles I’ve read on the subject. Many have tried to resolve issues with their resort, but the oral representation clause reigns.

http://www.nolo.com/legal-encyclopedia/options-avoid-timeshare-foreclosure.html

A good number of those reporting back to us that their resort will not cancel their loan, despite alleged deception on the front end of the sale, has led to many indicating they will not be paying their 2018 maintenance fees. They have no choice because they cannot afford the timeshare. Do not respond to the ads appearing when we publish our articles asking for upfront money to get you out of your timeshare.

I question how the industry can survive. Almost all of the members contacting us have children and grandchildren. Although there is a bit of a role reversal with several parents telling us, “We haven’t told our kids about this”, many have, and those children and grandchildren want nothing to do with the timeshare product once they learn their parents were deceived into buying it.

Please continue to report your grievances. In the book The Burglary by former Washington Post reporter Betty Medsger, describing the break-in at the FBI office in late 1970 that led to the exposure of J Edgar Hoover’s illegal surveillance tactics, led by a Haverford College physics professor at the Media, PA FBI office.  Gloria Steinem wrote as a testimonial:

“Ordinary people have the courage and community to defeat the most powerful and punitive of institutions.”

Timeshare today is broken. When sales agents can lie and laugh about it, at the expense of the young and the old, financially devastated by their vacation plan, something is very wrong. Lawmakers, heavily influenced by the industry, don’t seem to care because timeshare buyers don’t typically buy a timeshare in the state they live in. Attorneys General try to protect the public, but the settlements achieved are mere speed bumps in extraordinary revenue streams.

Add your voice to the growing number of timeshare members who have had enough. Contact Inside Timeshare or one of these self-help groups if you have had enough of the hamster wheel called timeshare sales if deceit has been used to sell the product, foreclosure to retrieve it, and resale at full price to continue the never ending process.

https://www.facebook.com/groups/DiamondResortsOwnersAdvocacy/

https://www.facebook.com/timeshareadvocategroup/

https://www.facebook.com/groups/180578055325962/

green advocacy

 

So there we have it, no resale or secondary market equals foreclosure, what a state of affairs.

In Europe we are seeing the proliferation of the bogus claims companies, these are playing on the desperation of those who want out but are unable to do so. It may be the resorts or developers will not allow them out, it may be they are unable to sell due to no market, it used to be bogus resale companies that took owners for thousands, how times have changed or have they?

 

6-pillars-with-text

Hug Your Haters Part II: A Customer Service Message

Today’s article by Irene Parker is part II of her Hug Your Haters, which we published on 15 August,

http://insidetimeshare.com/?s=customer+service+message

But first some of the latest in Europe.

At the end of last week, even though the courts are closed for business, another sentence against Anfi Sales SL and Anfi Resorts SL was published. This was issued by the Court of First Instance Number 1, based in Maspalomas, the court ruled according to the precedents set by the Supreme Court in Madrid.

Court Masp

In this case, the court ruled that the contract be declared null & void with the return of over 13,279€ plus legal interest. In this case the infraction was the length of the contract was greater than the 50 years allowed by Spanish timeshare law 42/98, which came into effect in January 1999.

Again this flies in the face of Anfi’s assertion that their contracts are legal and that they have not lost any cases, see the article “Truth, What is Truth?”  Published on 10 August.

It is not just Anfi who deny these facts, Silverpoint have been doing so for years, they have even left the RDO and claim they no longer sell “timeshare”. So what are they now selling?

Well, we do know one product is Keys Concierge, a so-called “Lifestyle Credits” product, which promises a great deal but does it actually deliver? Another ploy by Silverpoint is the move to transfer the blocks of timeshare weeks they sold to clients (with the promise to sell in 2 years for a profit), into what is euphemistically called a “Company Participation Scheme”. Not much is known at present, a lot more research is yet to be done, but it appears that clients sign a document at the notary which makes them shareholders of the company Club Paradiso. If this is the case, then all liabilities of the company will fall squarely on those clients shoulders. More on this when the research is complete.

Now on with Irene’s article.

Hug Your Haters Part II

My Marriott Customer Service Experience

testimonials

By Irene Parker

August 29, 2017

Customer Service is a Spectator Sport, according to Hug Your Haters author Jay Baer. Although Hug Your Haters was written primarily for the providers of customer service, users of Customer Service can benefit from the book as well. Social Media has dramatically changed Customer Service in a way many timeshare companies have yet to acknowledge. The Marriott hotel chain seems to have gotten the message and has adapted to the new world order.

 

Mr. Baer discusses in his book the difference between onstage and offstage Haters. Many of the complaints Inside Timeshare has received are from offstage Haters, unfamiliar with Social Media. Sometimes offstage Haters need an onstage Hater to plead their case.

Disney Vacation Club seems to have bucked the timeshare trend, refusing to fall back on the oral representation clause that states, “I did not rely on any oral representation to make my purchase” which translates to the customer is always wrong. Disney has few timeshare complaints so it’s not surprising to find former Walt Disney theme park executive Lee Cockerell, author of The Customer Rules, mentioned in Hug Your Haters. Mr. Cockerell explains in his book how he would encounter employees blaming the customer:

“From time to time over the years, a customer would complain to me that a frontline employee had been belligerent. When I asked the employee what happened, I’d usually be told the customer was wrong about the facts, or had been abusive, or trying to cheat the company. Most of the time, the employee believed it was better to lose a bad customer than appease one.” p. 115

A Lesson for Other Timeshare Companies

Another Hug Your Hater example is Pella Windows and Doors, VP of marketing Elaine Sagers. “Monthly, our executives call a random selection of unhappy customers to talk about their experiences with us…..We’ve also played recordings from the call center so you can hear the emotion in our customers’ voices around what’s been happening with jobs and their homes.” p. 120

Having listened to 133 timeshare complaints, mainly about maintenance fee relief programs that do not exist, or the ability to sell points when no secondary market exists, it’s hard to understand how companies can so often ignore or dismiss allegations, especially when a volume of complaints (119 out of 133) meet the definition of white collar crime – “deceit, concealment, violation of trust and bait and switch” – painting a compelling and compounding picture of trouble within a company or within the timeshare industry as a whole. I challenge any timeshare executive to listen to the tone of the voices of families devastated financially by their vacation plan. “Well you signed a contract,” is not the appropriate answer. I’m sure Mr. Baer would agree.

Mr. Baer makes another important point I have often stated when it comes to offering a customer wronged an apology. “In some corners of the business universe, anyone interacting with customers is prohibited from saying (or typing) an apology, because it is believed – by particularly Draconian attorneys – that it could weaken the company’s position in a legal proceeding.” “In the world of Charles Dickens, ‘If that’s the law, then the law is an ass,’” Mr. Baer quotes Michael Lasky, an attorney and litigator with the Davis & Gilbert law firm in New York City. Mr. Laskey emphasized that of course companies should be careful about what they say, but the answer is not to ever say “I’m sorry.” p 125

marriott rewards

Page 138 of Hug Your Haters discusses the importance of rapid complaint response time. My husband and I have been Platinum Marriott Rewards members for several years. About a decade ago I complained about something I can’t remember at a Marriott Hotel front desk. I was just complaining, not asking for compensation, yet the company responded with an automatic adjustment in reward points. Every 20 or so stays, something might happen that I would complain about had it not been for the times the company responded rapidly and appropriately.

Right out of the Hug Your Haters playbook, I posted a comment on the Marriott Facebook about how a trainee and a manager patiently and pleasantly changed our room three times to address our concern about highway noise. I posted this experience on Marriott’s Facebook and they almost immediately responded, “Irene, we would like to share this on our comment site if that’s alright with you.” As Mr. Baer explains, onstage Haters (or Lovers) don’t expect to be answered. When they are, they are taken aback, astonished that a company as large as Marriott would care.

I can’t speak for Marriott Vacation Club, the timeshare company, because I am not a member, but one of our Advocates, a senior manager with a Fortune 500 company, also a Marriott Vacation Club member, made this comment about Marriott in Part I of our Inside Timeshare article Hug Your Haters, “I think of a brand like Disney first and foremost. Also, while I know a company like Marriott has their critics, in all my years traveling and staying at their hotel and timeshare properties I always got the impression they were serious about fulfilling their fiduciary responsibilities and providing top shelf customer service and a quality customer experience.”

Onstage Haters compared to Offstage Haters – Chapter 7

Some companies respond to negative comments by expanding their advertising budget. “Advertising is a tax paid for being unremarkable,” is a quote Mr. Baer said is usually attributed to Robert Stephens, founder of The Geek Squad,  but he rephrases the comment appropriately, “Advertising is a tax paid when you’re poor at retaining your current customers.” p. 18

“Listening is the ability to pay attention to what the sounds means and understanding it. We hear noise, but we listen to music. That is because noise falls on our ears without any effort at our end,” said an anonymous writer explaining the difference between hearing and listening. Too often customer complaints are dismissed as noise in the form or automatic denials to a complaint filed against a timeshare sales agent (s).

create

These are but a few timeshare Advocacy Facebooks and websites of members helping members because company complaints so often fall on deaf ears. They are closed groups, but all would welcome corporate representatives bold enough to listen and learn. We hope timeshare industry executives, ARDA and lawmakers will take the time to not just hear, but listen.

Bluegreen and Diamond Resorts Advocacy Facebooks

We seek to provide Diamond Resort members a way to proactively address membership concerns; to advocate for timeshare reform; to obtain greater disclosure from the company; to advocate for a viable secondary market; and to educate prospective buyers.

https://www.facebook.com/groups/DiamondResortsOwnersAdvocacy/

https://www.facebook.com/timeshareadvocategroup/

https://www.facebook.com/groups/180578055325962/

New York Attorney General Eric Schneiderman recently sent a message in the form of a $6.5 million settlement against The Manhattan Club timeshare accused of restricting availability for members who paid thousands of dollars for a timeshare while allowing access to those booking online. The settlement response was a reaction to a chorus of timeshare members mobilized and action orientated. All timeshare owners are grateful because a victory for one is a victory for all. Lack of availability is a universal complaint.

change

Thank you Irene, once again you have given us a look into the world of “Customer Service” or in some cases lack of. It is one of the main complaints that Inside Timeshare does receive, in many cases the sales staff are only intent on getting more money from you, rather than helping to get the best from your membership.

If timeshare is to flourish, developers and resorts really do need to look at this aspect and change their practises. Disney is a very good example of this as we showed in a previous article by Irene, “Disney Vacation Club Vs The Timeshare Industry”, published in July’s “A Lesson for Other Timeshare Companies”.

If you have any questions or comments Inside Timeshare invites you to contact us, your views are important, it will help to change the industry for the better.

Have you been contacted by a company you have never heard of, or want to know more about but don’t know how to start, again contact Inside Timeshare and we will point you in the right direction.

help

6-pillars-with-text 1

A Customer Service Message

Customer service is the provision of service to customers before, during and after a purchase. The perception of success of such interactions is dependent on employees

“who can adjust themselves to the personality of the guest”.

Today we publish another article by Irene Parker, this is entitled Hug Your Haters! A Customer Service Message. It is a look at Jay Baer’s book of the same title, which will be available at most airport bookstores through September. Irene already has her copy, Forbes has an article reviewing the book written by Shep Hyken:

https://www.forbes.com/sites/shephyken/2016/02/20/love-your-customers-hug-your-haters/#6c2d2bfa1573

But first some other news.

It has been announced that RCI the timeshare exchange company,which is part of part of Wyndham Worldwide, is set to take over the Australian exchange company DAE, Dial An Exchange. This has been an independent exchange program for many years, it is popular for one simple reason, there are no annual membership fees. Owners only pay when they make an exchange, which does seem to be the fairest method, as you may pay a membership fee and never actually use it every year.

Obviously with the link to RCI, it may be that will benefit those who use DAE, as it should increase the number of resorts available to them. Many owners in the UK like the DAE system as they were rather disappointed with RCI and the annual fees on top of their ever increasing maintenance charges.

According to RCI, DAE will still be a stand alone company, with no interference from RCI, the questions is for how long?

Since the article Truth, What is Truth , was published last Thursday, Inside Timeshare has been receiving many more enquiries from confused Anfi members. It would appear that Anfi has stepped up its campaign to spread the falsehood that they are not losing cases at the Lower Courts or the Supreme Court, by contacting members and laying the seeds of doubt. What must be remembered is the simple fact these cases are public record and can easily be verified. Somehow Inside Timeshare gets the feeling that not is all well at Anfi, from our sources there may just be a rather important announcement about to be made. We will keep you informed as and when news becomes available.

Truth, What is Truth?

Next week in our Tuesday article we will be looking at the flurry of lawsuits being brought against timeshare attorneys in the US, Irene again gives the US, along with her own view on this subject. It does look as though the timeshare industry on both sides of the great lake are on the offensive.

So now to Irene’s latest contribution.

Hug Your Haters! A Customer Service Message

A timely message and a needed customer service handbook

catdog

http://www.jaybaer.com/hug-your-haters/

By Irene Parker

August 15, 2017

Hug Your Haters was written before the violence that took place in Charlottesville, Virginia over this past weekend. The event was planned by white supremacy demonstrators. I was trained by a financial planner from Trinidad. He shared with me this story about knocking on the door of a white man. When the man opened the door he took a hard look at my mentor and said, “I shoot black people.” My mentor responded, “I’m not black. I’m from Trinidad.” After a second hard look this white supremacist laughed and said, “You want a beer?”

No matter the color of skin, the amount of wealth you possess, or your determination to make a sale, people are people. Even kings interacted with peasants. Jay Baer’s book could not be timelier. Communication is the key, author Jay Baer asserts. Inside Timeshare agrees.

New York Times bestselling author Jay Baer is to be the keynote speaker at the Interval International Shared Ownership Conference to be held at the Miami Beach Eden Roc Hotel October 23 – 25. Mr. Baer has advised more than 700 companies including The United Nations and 32 Fortune 500 companies.

https://www.regonline.com/builder/site/Default.aspx?EventID=1951406

The title of Mr. Baer’s book, Hug Your Haters, is also the title of his keynote speech that he will deliver to developers, investment bankers, private equity firms and other capital investment firms.

Our Timeshare Advocates are hopeful, as the only response our 400 plus member supported Diamond Resort Advocacy Facebook group has ever received from Diamond was from one brave sales agent who joined the group. Basically, his conclusion was that we are irresponsible whiners unwilling to fulfill our obligations. He ultimately had to be removed for driving away already financially shattered members.

In preparation for Mr. Baer’s keynote address, I have invited him to join our Facebook hoping he may be our bridge to communication. He would at least be provided a microcosm of timeshare comments and complaints to study. I don’t know if I would call us Haters. I think seekers of accountability and transparency describe us better.

We seek to provide Diamond Resort members a way to proactively address membership concerns; to advocate for timeshare reform; to obtain greater disclosure from the company; to advocate for a viable secondary market; and to educate prospective buyers.

https://www.facebook.com/groups/DiamondResortsOwnersAdvocacy/

We are not alone. DRIP is a website launched by over 1,000 British members trying to find a way out of their timeshare contracts.

http://drip.enjin.com/

A Club Intrawest Owners Group Facebook has over 3,400 members

https://www.facebook.com/Club-Intrawest-Owners-Group-921012087982547/

A recently launched Gold Key Diamond acquired resort Facebook

https://www.facebook.com/groups/1639958046252175/

Acquired resorts are on a campaign to reach out to other members in an effort to convince owners not to give up their deed in exchange for non-deeded right to use points.

Eight hundred Bluegreen members call this Facebook Bluegreen Class Action

https://www.facebook.com/groups/180578055325962/

Wyndham lost a whistleblower lawsuit when a jury awarded former Wyndham sales agent Trish Williams $20 million. Ms. Williams mentions TAFT days – tell them any fxxx thing to sell points on slow sales days.

https://dolanlawfirm.com/2016/11/wyndham-vacation-whistleblower-verdict/

hater

I could go on, but clearly Mr. Baer has his work cut out for him.

The timeshare lobby organization ARDA will be quick to point out that 83% of 9,000,000 timeshare owners are happy with their timeshare. Mr. Baer I’m sure will be quick to point out that the 1.15 million who responded they are not happy with their timeshare should not be ignored, even on social media sites. Mr. Baer’s primary thesis is:

Haters are not your problem…..

Ignoring them is.

In his book, Mr. Baer goes on to say that choosing to stay silent speaks volumes. Not responding is a response that says “I don’t care about you.” He talks about how it is psychologically difficult to engage with Haters, especially when they shine a giant spotlight on their perception of your shortcomings.

It’s not all gloom and doom though, at least not for Disney owners. We published this article analyzing why Disney has so few Haters.

http://insidetimeshare.com/lesson-timeshare-companies/

As far as us chalking us up as disgruntled grumblers that don’t know how to use our points properly, here is one of our Advocates offering his analysis, previously published as a stand-alone article, why the timeshare industry has so many Haters;

It appears the industry has long depended on “self-regulation”. It has not done a great job of that but there have always been just enough companies that seem to try and deliver a quality product and quality customer experience at the same time they balance trying to make a healthy profit.

I think of a brand like Disney first and foremost. Also while I know a company like Marriott has their critics, in all my years traveling and staying at their hotel and timeshare properties I always got the impression they were serious about fulfilling their fiduciary responsibilities and providing top shelf customer service and a quality customer experience. I am sure there are other good examples.

In the past, the actions of the bad eggs of the industry (the industry’s worst examples), the negative impact was always minimal and able to be managed before it metastasized. But the potential problem as I see it is that in the last decade it appears what may be described as large predatory financial engineering companies almost “posing” as timeshare companies have risen and aggressively worked every loophole and non-regulation to their own advantage and now are probably guilty of gross violations of their fiduciary responsibility to their customers / owners. These companies have created vast fortunes for a very small network of individuals at the top of the pyramid.

Ironically though, and looking at historical examples from other industries, it is these very companies likely to bring the whole industry into the national spotlight and to its knees eventually. Some of these appear to have walked to the edge of doing that already.

As these quasi financial engineering / timesharing companies become increasingly more brazen in chasing profits by any means possible, raising fees rapidly at the same time they are reducing owner benefits, due to their increased sheer size the public outcry will likely increase and just the odds of random probability suggests there will be a “Gotcha” moment or event that will bring increased scrutiny and increased legislation.

If the good timeshare companies try to ignore what the bad ones are doing, they may find someday that their systems and profits and share prices are negatively impacted by the future regulations forced on the industry from the egregious actions of the bad actors in their industry.

challenge

We will continue our discussion in a Part II Hug Your Haters article examining two of the eleven points Mr. Baer said customer service professionals will learn by reading Hug Your Haters.  

The two types of Haters and what they want from you when they complain.

Why you need to answer every complaint, in every channel, every time.

Finally, why am I so critical?

It all started when my husband and I attended a pathetically aggressive sales presentation, lied to in order to get us to attend. We had not been happy with availability so in no way were we going to purchase more vacation points. We make due but, like many others, we feel we were oversold on availability.

Next, I learned when we tried to sell our points, because our contract said we could, not one member of the 64 member Licensed Timeshare Resale Broker Association will accept a Diamond Resort listing, although they will accept virtually all major competitor listings.

http://www.licensedtimeshareresalebrokers.org/

As I started publishing articles for TheStreet, Jim Cramer’s Mad Money Investment News Service and then Inside Timeshare, I began to hear from timeshare Haters the world over, including the Philippines and Australia. Families allege they were sold by deceit and bait and switch. To date I have heard from 114 families of which 101 would fall into the Hater category. The others were simply seeking how to go about relinquishing their timeshare.

You can Hug Your Haters all day long but if a timeshare company violates their trust and respect by siding with the sales agent over the customer when the customer knows what they were promised and what was not delivered, Hugs won’t help. Change will.

As our online information site Timeshare Advocacy Group ™ states,

Knowledge Speaks, Wisdom Listens (Jimi Hendrix)

https://www.facebook.com/timeshareadvocategroup/

This certainly looks a very interesting book and I personally will be looking out for a copy, thanks again to Irene for her insight into this subject, with part two being published next week. Maybe, just maybe, the industry will take note of this.

Over the next few weeks we have some very interesting articles in the pipeline, with one article giving the results of our Timeshare Advocacy Group and the results achieved so far.

If you have any comments on any article published or need any help and advice on any timeshare related matter, contact Inside Timeshare and we will point you in the right direction. Inside Timeshare is committed to giving you the facts and not fake news.

letter from america

Friday’s Letter from America

Welcome to this week’s Friday’s Letter from America, this week Eron Grant submits her open letter to ARDA (American Resorts Development Association), for those in Europe that is the RDO. She explains her experience at the hands of a sales agent and asks why does ARDA have a code of ethics if these agents and resorts ignore it? Very good point, the same can be said of the RDO.

First a roundup of this week. For August it has been quite a full week for Inside Timeshare considering that the courts are closed so no news on that front. We began with the ongoing story of the fake law firms in operating out of Tenerife, yes, that family called Litigious Abogados, bit of a sorry story this one.

Unfortunately, the gentleman in question didn’t find our previous story in time, he was totally taken in by the documents and smooth legal talking of this crowd. It began with the usual pitch, that his timeshare company had a case against them ready to go to court and he could be part of it. He duly paid the initial Procurador fees, then a few weeks later he got the great news that he won the case and the court had awarded him thousands in compensation, brilliant!

Now it was only a matter of paying 20% of the award to the tax man to release the money, this done he was told his cheque was on the way. The envelope arrived with the court papers, but no cheque, the envelope had been opened and the cheque missing. After contacting the “Law Firm”, another company contacted him saying the court had appointed them to investigate and get his money back, apparently this Romanian gang had stolen the cheque and cashed it. Don’t worry, we will get the money back from the bank. First you have to pay us 10% of the amount.

Compensation_Cheque-page-001

Then in what can only be described as a further insult to injury, he was told he owed the property tax on a property he owned in Spain, his NIE Number had expired plus he had outstanding fines for a traffic offence. But we can sort this out for you and get the money released, for a fee.

This has lost him thousands of pounds and has caused him great stress. So beware, it may sound good and look genuine, but it rarely is.

On Tuesday, we published the ongoing story of Tauro Beach, the flagship project from Anfi, this time it was a couple of independent research journalists, Anders Lundqvist and Rowan Bauer. In their article, published in the UK paper The Guardian, they investigated the importation of the sand for this man made beach, brought in from the Western Sahara in breach of UN sanctions and European Court of Justice rulings.

This investigation is still underway by various authorities, the main one being SEPRONA, the Nature Protection Service of the Guardia Civil.

Wednesdays article was from Irene Parker on the Welk Resorts case against Timeshare Exit Team. It highlights the dire need for a proper secondary market and a fair exit strategy for those who do not wish to sell.

In this article we opened with news that the TATOC Help Line had closed, we also published a link to a very good in depth report on the importation of sand from Western Sahara and a little of the history from that region. This was written by Ed Timon Editor of The Canary News, an english language newspaper in Gran Canaria.

Yesterdays article was entitled, Loyalty: No Such Thing in Timeshare, in this piece we showed that even old friends will attack each other for your money in this business. It told the story of a company owned by an ex manager of another company, who is now in the business of supposedly claiming compensation against his old employers. Unfortunately, his history and publicity is not as squeaky clean as he would like you to believe, we leave that to your judgement.

So on with this week’s letter.

Why does ARDA have a Code of Ethics?

Woman what

Members are beginning to wonder

ARDA’s Answer from ARDA’s website

ARDA and its members are committed to the highest standards and ethical behavior in vacation ownership. To demonstrate that commitment, all ARDA members as a condition of membership must agree to comply with the ARDA Code of Ethics.

The intent is that all member activities subject to the Code are designed to be honest and fair, and are conducted with integrity, dignity and propriety.

By Eron Grant

August 4, 2017

Part I – My letter to ARDA

Part II – ARDA’s Code of Ethics

Part III – List of Inside Timeshare member articles that question the Code

Mr. Clements, General Counsel and Lobbyist for ARDA,

My husband and I feel we have been deceived by Diamond Resorts International, and ask for your assistance in getting justice for our victimization.

In November of 2016 we stayed in one of DRI’s timeshare resorts in Sedona, AZ through our Interval International membership. While there we attended a DRI sales presentation. The hotel concierge gave our family of 4 a $150 gift card to a local restaurant for our thanksgiving meal, and in return we were to attend a 90-minute sales presentation. The presentation ended up lasting 6 hours, with our sales agent becoming agitated when we said we needed to leave due to my husband’s golf tee time. This violates ARDA’s Code of Ethics of “Information”.

The sales agent, Karen Calvano, empathized with us about our inability to stay in resorts unless located close to home which is in Houston, TX. She said she knew Interval International did not have many resorts in our area, but that DRI had many resorts, and we would certainly be able to find resorts in Texas, New Mexico, and Louisiana. As it turned out, DRI’s resorts in our area are owned by affiliate resorts rather than DRI and costs approximately more points than we were sold. This violates ARDA’s “Exchange Program” in which we were over promised on the likelihood to exchange for Diamond’s inventory in our area.

When I looked on the Diamond member website recently, Diamond’s Great Wolf Lodge affiliate property in Texas was available for 26,911 to 66,467 points. If we multiply 26,911 by 20 cents which is the typical cost of maintenance fees, it would cost $5,382 for a one week stay. Booking.com had the same Family Suite available for the same week for $1,700. This is not an unusual scenario. I have searched various times throughout the year.

We attended DRI’s “Event of a Lifetime” in January, 2017 which we were told was our member orientation. The “orientation” turned into a high pressure sales presentation quickly with misleading information regarding redeeming our points for 30 cents per point if we paid to upgrade our membership to platinum. When my husband, Dr. Mark Grant, asked to see the price per point in writing, the sales agent pointed to his own written notes to show us that it was legitimate. My husband pointed out the documented literature which showed the amount at 10 cents per point, and the salesman quickly dismissed us to the next sales agent.

According to the ARDA Code of Ethics, this sales agent violated the ethics standard of “Avoidance of False and Deceptive Statements”.

Mr. Clements, as you can tell from the brief account I have written, we are in a rough situation with devious minded people who have not followed ARDA’s Code of Ethics, and should therefore be forced to let us out of our contractual agreement.

We appreciate your consideration, and assistance!

Sincerely,

Eron Grant

Response from Diamond

I am responding to your concerns regarding availability in Texas and Louisiana. While Diamond Resorts does not own or manage any properties in these states, we do have affiliate agreements with several resorts. These properties offer us limited inventory each year to offer to our members to book with their points. Inventory is typically limited, and prices are set by the properties themselves, and not by Diamond Resorts. These properties are offered on a first come, first served basis in addition to the Diamond Resorts properties covered under your contract.

Diamond Resorts does offer a property in New Mexico, the Villas de Santa Fe. If you would like assistance booking at this property, please let me know and I will be happy to assist.

My Response

My concerns with Karen Calvano stating “DRI has several resorts in TX, LA, and NM” is that when we asked her to show us the properties she said, “Oh we can’t do that right now, but we can do that later.” After 6 hours of being with her, we were exhausted and never did see the properties.

We explained that we are owners with Marriott and members of Interval International already, so affiliate properties through DRI really don’t help us. Plus, the value of your affiliate properties is ridiculous. How does this help us?

questman1

I would like for Mr. Clements or someone at Diamond to explain to me why this does not meet the definition of White Collar Crime: Deceit, concealment, violation of trust and bait and switch. In my opinion, there is no doubt what we were offered and what we received meets this definition and violates ARDA’s Code of Ethics.  

Ethics Code of the American Resort Development Association

adopted by the Board of Directors April 7, 2014

  1. General Ethics Standards.  
  1. Disclosure.

With respect to the sale, resale or marketing of a Vacation Interest, the Member shall:

  1. Provide fair, meaningful and effective disclosure to the consumer regarding the Vacation Interest and all material terms and conditions of the offer of a Vacation Interest.
  2. Provide fair, meaningful and effective disclosure to the consumer of all material terms and conditions of all other products offered contemporaneously with the Vacation Interest, including exchange programs, incidental benefits, financing, short-term products and exit programs.

The Full Code: http://www.arda.org/ethics/

audience

Note from Irene Parker

Inside Timeshare has received complaints from many angry timeshare members, including Bluegreen members. Here are just a few of the many members who have contacted Inside Timeshare wanting their voices heard.

This is our DRI Advocacy Facebook page which respectable sales agents and corporate personnel are allowed to join. We hope the folks at Diamond, Bluegreen and ARDA will take the time to read member stories. We promise you will learn a lot.

We seek to provide Diamond Resort members a way to proactively address membership concerns; to advocate for timeshare reform; to obtain greater disclosure from the company; to advocate for a viable secondary market; and to educate prospective buyers.

https://www.facebook.com/groups/DiamondResortsOwnersAdvocacy/

Member articles

Michael Nuwer and Justin Morgan

http://insidetimeshare.com/fridays-letter-australia-no-read-correctly/

Alan and Debbie Callner

http://insidetimeshare.com/wednesday-article-america/

Detective Lela Renea a Bluegreen member

http://insidetimeshare.com/fridays-letter-america-11/

David Franks Chapter 2 (Chapter 4 upcoming)

http://insidetimeshare.com/fridays-letter-america-10/

Karen Garello Secret Shopper June 22, 2017

http://insidetimeshare.com/works-industries-not-timeshare/

Romeo and Lily

http://insidetimeshare.com/fridays-letter-america-9/

Dr. Jeffries

http://insidetimeshare.com/fridays-letter-america-7/

Angela Johnson

http://insidetimeshare.com/timeshare-advocacy-group-update/

Neina Orrillo

http://insidetimeshare.com/diamond-in-the-news-again/

Barclaycard and Member stories May 17 2917

http://insidetimeshare.com/timeshare-barlcaycard-us/

Marjorie Menacker

http://insidetimeshare.com/another-nightmare-timeshare-street-client-experience-diamond/

Eron Grant May 12, 2017

http://insidetimeshare.com/fridays-letter-america-4/

Nancy Callahan April 24, 2017

http://insidetimeshare.com/another-nightmare-timeshare-street/

Betty Burmeister and a Filipino Family April 13, 2017

http://insidetimeshare.com/anatomy-timeshare-foreclosure/

Laurie Sabbagh Secret Shopper March 17, 2017 Clarity Review

http://insidetimeshare.com/friday-review-news-across-ocean/

A Military Family March 6, 2017

http://insidetimeshare.com/consumer-protection-week-usa/

The Hurleys January 25, 2017

http://insidetimeshare.com/timeshare-advocacy/

Irina Allen January 13, 2017

http://insidetimeshare.com/timeshare-news-across-atlantic/

Kathie Old December 6, 2016

http://insidetimeshare.com/call-change-us-timeshare-industry/

Wyndham Trish Williams $20 Million Whistleblower Jury Award December 5, 2017

http://insidetimeshare.com/wyndham-whistleblower-update/

The Peasant of Venice and the Queen of Versailles November 7, 2017

http://insidetimeshare.com/peasant-venice-queen-versailles/

Sylvia Saldana and the Barclaycard October 25, 2016

http://insidetimeshare.com/irene-parker-write-barclay-card-usa/

right wrong

Thank you Eron Grant and Irene for this weeks contribution, these are your stories, they are published so you know what is going on in this murky world called timeshare. If you have a story you would like to share or have any comments Inside Timeshare would love to hear from you.

If you have any questions or even need to know if you are dealing with a possible “scam” company, get in touch with us. Even if we don’t know the answer straight away we know where to look and can point you in the right direction. Remember it is better to be safe than sorry, doing your homework is essential, even more so in today’s timeshare world.

So it only leaves us to say, it’s Friday, have great weekend.

fridaycat

letter from america

Friday’s Letter from America

Welcome to this week’s Friday’s Letter from America, this week we publish an article from one of the Advocates, as usual this has been edited by Irene Parker. First a word from Europe.

The Litigious Abogados family have taken their little scam to a new level, Inside Timeshare was horrified to receive yet another sorry story from a reader who found the articles too late.

In this story he has paid the initial procurator fees, then the “tax” to have the money released from the court. He then received an envelope with the cheque for his compensation, unfortunately it had yet again been opened and the cheque was missing. As usual he then received another letter from another company stating they had been assigned by the courts to investigate this and get his money back from the bank. This cheque had yet again been cashed by a gang of Romanians.

He then paid the 10% of the amount on the cheque to this company, then he receives notification that he has outstanding property tax for a property he owns in Spain, this needs to be paid before the money is released as it is embargoed. He is then informed that his NIE number is out of date and needs to be renewed, they will do it for him for a fee.

The next letter he receives is that he has outstanding fines for a traffic offence!

Very strange indeed, the full story will be published next week, but this does reinforce the fact that before you pay any money, check who they are.

So now on with this week’s article.

A Timeshare Advocacy Group™ Advocate

Offers a Timeshare Industry Analysis

cartoon a

By an Advocate

July 28, 2017

What I have started to think when it comes to timeshare ownership and the future of the industry…

Everyone knows this industry is not well regulated (but obviously needs to be). Some of the actions and activities of individuals and companies that get reported in the timeshare world would result in major fines and possibly prison sentences in other better regulated industries.

It appears the industry has long depended on “self-regulation”. It has not done a great job of that but there have always been just enough companies that seem to try and deliver a quality product and quality customer experience at the same time they balance trying to make a healthy profit.

I think of a brand like Disney first and foremost. Also while I know a company like Marriott has their critics, in all my years traveling and staying at their hotel and timeshare properties I always got the impression they were serious about fulfilling their fiduciary responsibilities and providing top shelf customer service and a quality customer experience. I am sure there are other good examples.

In the past, the actions of the bad eggs of the industry (the industry’s worst examples), the negative impact was always minimal and able to be managed before it metastasized. But the potential problem as I see it is that in the last decade it appears what may be described as large predatory financial engineering companies almost “posing” as timeshare companies have risen and aggressively worked every loophole and non-regulation to their own advantage and now are probably guilty of gross violations of their fiduciary responsibility to their customers / owners. These companies have created vast fortunes for a very small network of individuals at the top of the pyramid.

Ironically though, and looking at historical examples from other industries, it is these very companies likely to bring the whole industry into the national spotlight and to its knees eventually. Some of these appear to have walked to the edge of doing that already.

As these quasi financial engineering / timesharing companies become increasingly more brazen in chasing profits by any means possible, raising fees rapidly at the same time they are reducing owner benefits, due to their increased sheer size the public outcry will likely increase and just the odds of random probability suggests there will be a “Gotcha” moment or event that will bring increased scrutiny and increased legislation.

If the good timeshare companies try to ignore what the bad ones are doing, they may find someday that their systems and profits and share prices are negatively impacted by the future regulations forced on the industry from the egregious actions of the bad actors in their industry.

Pharma for example is still dealing with the Turing Pharmaceuticals fallout even now 2 years later, and that fallout will likely not dissipate anytime soon.

This is just my still forming hypothesis. We’ll see.

greed

Thank you to the author of this article and to Irene who did the editing, we also thank all those who read and made comments before it was published.

It just remains for Inside Timeshare to wish you all a very good weekend.

friday-again

 

start the week

Starting The Week.

We ended last week with a new contributor, Justin Morgan from Australia, along with some of the news from the courts in Spain. In those reports it was mention that the court in Tenerife had found once again against Diamond Resorts contracts. We have been reliably informed of many more cases in the pipeline.

If last week is anything to go by, we are expecting many more sentences being announced over the course of this week. Although, these will be among the last before the annual break in August, where Spain basically shuts down for the month.

Just moving away from Diamond for a change, last October we published an article of a class action lawsuit against Marriott. The case is for alleged “racketeering”, a term we usually associate with the old gangster films depicting the escapades of the likes of Al Capone, not large timeshare and hotel companies.

This the Irene Parker’s update on this story.

The Marriott Racketeering Case – An Update

Not since the Book of Genesis [1:9-10] has the extraordinary feat of creating land from nothingness been chronicled … and Marriott “saw that it was good” for business. (Plaintiff’s response to motion to dismiss)

Moses

By Irene Parker

Some stories tell themselves

July 3, 2017

Timeshare members find themselves with few friends in Florida state legislative and regulatory circles. The Florida Timeshare Division only acted on 110 out of 2,360 timeshare complaints filed from April 2012 to April 2014. In addition, a Florida law passed in 2015, making it more difficult to get out of a timeshare contract, sparked outrage among timeshare owners and advocates. I’m told $70 billion a year flows into Florida in timeshare dollars. That kind of money certainly could buy a lot of power and influence.

http://www.orlandosentinel.com/news/taking-names-scott-maxwell/os-gov-rick-scott-signs-bad-timeshare-law-20150617-post.htm/

http://insidetimeshare.com/chicken-soup-timeshares-soul/

Paul Brinkmann of The Orlando Sentinel first reported on the Marriott Racketeering case back in May of 2016.

The lawsuit takes aim at Marriott’s points program, which replaced traditional sales of timeshare weeks at specific resorts in 2010. According to the suit, Marriott timeshare customers pay fees associated with owning real estate — such as closing costs and recording fees — but don’t actually own any real estate.

The lawsuit says Marriott timeshare buyers “are being duped into believing they are obtaining title to a real-property interest … when, in fact, they are merely getting a right-to-use license,” the lawsuit says.

Edward Kinney, spokesman for Marriott Vacation Club, said the company will defend itself in court. He said the timeshare industry is highly regulated.

“We sense the people behind this lawsuit have a misunderstanding of how our product works. But we follow every aspect of the state regulatory compliance for vacation ownership sales,” Kinney said. “Everything we do as far as sales are reviewed by the state.”

Fast forward one year later

On May 23, 2017, Governor Rick Scott signed into law SB-818 which amends Section 721.05(21) of the Timeshare Act by adding a subsection (b) to clarify that, for purposes of a “multisite timeshare plan” (e.g., the MVC Product), an “Interest Holder” does not include any person or entity that has an interest in, or lien on, the underlying condominium or property:

https://www.flsenate.gov/Session/Bill/2017/00818/?Tab=BillHistory

Revising the definition of the term “interest holder” to clarify that the term does not include certain parties to a certain multisite timeshare plan; revising requirements for the termination of a timeshare plan; specifying the percentage of votes required to extend the term of a timeshare plan under certain circumstances, etc.

Marriott defendants then submit to the Court

Case No. 6:16-cv-855-Orl-41TBS

This Notice is being submitted to alert the Court to a recent amendment (“Amendment”) to the Florida Vacation Plan and Timesharing Act, Fla. Stat. § 721.01, et seq. (“Timeshare Act”), in further support of the Marriott Defendants’1 and the First American Defendants’ Motions to Dismiss the Complaint (see Doc. Entries 77, 78, and 79, filed September 15, 2016).

Attorneys for the Plaintiffs respond to the request for dismissal (excerpts)

Based on the fact that the FVPTA Amendment (which became effective on May 23, 2017) is so specifically tailored to address a narrow exception pertaining precisely to the particular facts of this case, it is beyond obvious that Defendants (immediately following briefing on the motions to dismiss) railroaded the law through the legislative process.  Defendants’ blatant lobbying effort smacks of impropriety and amounts to an admission that their conduct is not authorized under existing law. Further, it is proof positive that Defendants are willing to use any means possible – including government influence – to mask the unlawfulness of their prior acts.  

Defendants were clever in making sure the FVPTA Amendment was characterized as a remedial “clarification.” Of course, simply calling it a “clarification” does not automatically bestow retroactive application – especially, in this case, where the FVPTA Amendment purports to clarify a long-standing law, enacted over twenty years ago.

An “interest holder” has a legally-binding property interest in the accommodations under the existing law. The definition of accommodation includes timeshare condominiums under the existing law. Fla. Stat. § 721.05(1). Therefore, it would substantively change the existing law to exclude from the definition of encumbrance anything that would be contained in a timeshare condominium declaration.

This makes it clear that the revision was recognized and acknowledged for what it truly is – a substantive change to existing law, creating new categories of exclusions to interest holders and having potential constitutional implications. Nothing in the legislative history, including any staff or committee analysis, provides even marginal support for the conclusion that the legislature intended the FVPTA Amendment to be a mere clarification that would have retroactive application in this case.

Regardless of Legislative Intent, FVPTA Cannot Have Retroactive Application because it will impair Vested Rights in Violation of the Constitution.

scroll

As usual, I contacted timeshare attorney Mike Finn of the Finn Law Group for his take on Governor Scott’s legislative prowess. Our Advocacy group of 84 Timeshare Advocates includes 18 attorneys. Timeshare is extremely specialized so we do not suggest any aggrieved timeshare member seek legal advice from any attorney without real estate or timeshare experience. Mike has assisted several timeshare owners needing legal assistance.

According to Mike,

“The constitution of the United States protects US citizens from Ex Post Facto laws, meaning that you cannot take an act and make it criminal after the fact. You can criminalize that action, but you can only do so prospectively because any actor is entitled to notice that this particular act is now a crime. How unfair it would be to be able to punish someone who had no previous warning that a non-criminal act was suddenly and with no advanced warning or notice made criminal?”

“There is no comparable constitutional protection in the civil arena even though the consequences in suddenly and intentionally changing a civil law while a case is pending, and applying the new law retroactively to a set of facts that resulted in extinguishing an existing and viable claim for monetary damages are essentially identical. Imagine how you would feel as the litigant bringing a claim, after hiring an attorney, filing a lawsuit that was meritorious when you filed it, only to have your case dismissed because the rules of the game were changed after you had filed your case?” “How dishonest!”

Attorneys for the plaintiffs continue

On May 16, 2016, the Plaintiffs (represented by Jeffrey Norton and the law firm of Newman Ferrara) filed a class action complaint against Marriott and First American (“Defendants”) that included numerous claims arising out of hundreds of thousands of instances of unlawful conduct, in which Defendants engaged for over seven years, related to the creation and continued sale and operation of the MVC Trust Product.

In December 2016, briefing on Defendants’ motions to dismiss was completed.

On February 9, 2017, SB 818 was introduced. That bill, introduced curiously on the heels of this action and immediately following briefing on the meaning of “interest holder” (a term having a direct impact on Defendants’ racketeering activity), sought to revise the definition of “interest holder” as it applies to the Florida Vacation Plan and Timesharing Act. More specifically, SB 818 aimed to “clarify” that the term “interest holder” excludes certain parties to certain multisite timeshare plans – a uniquely-focused amendment that appears specifically crafted to address claims in this case.

Three months to the day later, SB 818 was presented to Governor Scott for signature.

And, on May 23, 2017, SB 818 was enacted into law (the “FVPTA Amendment”).  Two weeks

later, on June 7, 2017, the Marriott and First American Defendants (the “Defendants”) filed the

Notice to “alert” the court of the FVPTA Amendment and its purported impact on this case.  

It seems obvious that because Defendants could not justify the legality of their conduct under existing law, they endeavored to change the rules. The Notice is tantamount to an admission that Plaintiffs’ claims are meritorious and that Defendants’ conduct violated the laws that actually were in effect during the relevant time period.

This is not the first time Defendants have endeavored to prevent this Court from considering the claims in the Complaint under existing law. Defendants previously filed a borderline frivolous motion seeking to invoke primary jurisdiction in order to refer the matter to the Florida Department of Business and Professional Regulation, Division of Florida Condominiums, Timeshares, and Mobile Homes (the “Division”), and a stay of the entire matter pending review by the Division.

(Note from Irene: Maybe that’s because only 110 out of 2,360 timeshare complaints were acted on by the Florida Timeshare Division.)

As argued by Plaintiffs, however, it is abundantly clear that the Division does not have primary jurisdiction over the claims in Complaint (and expressly rejects providing advisory opinions in pending litigation.

Parcels of real property do not simply materialize out of thin air by virtue of a statutory definition and nothing in the construction of a timeshare estate’s definition under Fla. Stat. § 721.05(34) supports Defendants’ preposterous construct.

girl

Whew! That was a lot for the average timeshare member to grasp, but more and more timeshare members are coming forward to learn about what goes on behind the scenes of their dream vacation. Inside Timeshare is hearing from timeshare members on a daily basis crying foul. Thank you to all our 18 attorney advocates as we work together to “take back our vacation” from an industry clearly in need of reform.

Once again Irene explains a difficult subject for us mere mortals in a way that is understood.

Over the weekend Inside Timeshare has received many more stories from some very concerned owners. It certainly looks like the articles we publish are hitting home to many owners, if you have any questions concerns or comments about anything published, contact Inside Timeshare and we will point you in the right direction.

                                                       

 

 

HowTrueIsIt_Header_760x250

The RDO and a Selective use of a Spectator Article on Timeshare

Laura Whitcombe published in The Spectator the article: Timeshare? Think stylish getaways, not dodgy sales reps, on the 27 May. The RDO used it in their article of 23 June titled: Why Now is the Right Time to Reconsider Timeshare.

She actually paints a very nice picture of timeshare today as compared with the past, but how true is this?

In some cases it may be true, but for many the reality is somewhat different, there are still so many resorts that are clinging to the old ways, never allowing owners to surrender. Rising maintenance fees and generally treating owners with contempt.

the spectator

Yes, we have said before the concept of timeshare is a good one, but there are still many complaints about timeshare, this is borne out by the number of court cases that are currently underway. In the article she says that CAB has had only 11 complaints in March, but she also points out that they are to do with resale companies. It has to be remembered that CAB will refer anyone with a complaint about their own resort to contact them direct. So relying on figures such as this does not paint the right picture.

She also highlights a couple of timeshares, one is the Gleneagles Golf Complex, which to be honest is not what you could call traditional timeshare. One would expect that this prestigious club would be totally above board!

The other is 47 Park Street in Mayfair London (by Marriott), again not what you would consider traditional timeshare, especially as membership is between £118,000 and £270,000 with annual maintenance fees of between £7,000 & £8,000 per year, not exactly for us mere mortals!

http://www.47parkstreet.com/

47 park st

Another company she highlighted was the Club la Costa Yachts,with membership starting at £9,900 for this you receive eight sailing weeks over an eight year period. The cost is also huge, with £700 per person per week which covers meals, crew etc, but again there is an annual maintenance fee of £600 per sailing week. Not a cheap option for the ordinary folk.

The RDO are certainly using this article to their advantage, is it a case of, look even The Spectator says that timeshare is a good thing. They have been very selective in what they have used, the references to the timeshare directives and laws, which have been around for years. Yet in the past it has been the very members of this organisation that have failed to follow them.

If there has been no breach of legislation why is it that those very resorts are now having to payout large amounts in compensation?

As for the claim that timeshare is being sold with shorter contracts, well that is only because of recent court cases, where the Spanish courts have banned the perpetuity contract, these are still legal in many other countries. Yet what is being done about them?

Hilton, Gleneagles, 47 Park Street may be selling the 10 to 15 year contracts, but then these are responsible companies, not the old style timeshare resorts or developers, these are also being aimed at a different type of purchaser to standard timeshare.

So all in all, the article does not actually reflect reality, it is a journalist’s take on a different product to the one we all know and possibly loathe. Timeshare is on the defensive, the RDO is charged with putting a different “spin” on the product, with articles such as this trying to make it look appealing. Only time will tell!

For the full article follow the link, (you may have to register to read it).

https://www.spectator.co.uk/2017/05/timeshare-think-stylish-getaways-not-dodgy-sales-reps/

 

 

letter from america

Friday’s Letter From America

Welcome to this Friday’s Letter from America, first a recap on the past week.

On Monday we wished the National Timeshare Owners Association a happy anniversary. For 20 years this organisation has been the voice of US timeshare owners, it is a totally independent body, not governed by the industry. Greg Crist the CEO works very hard to create a dialogue with the industry, he believes as we do that without dialogue there can be no changing of attitudes.

We also warned about another new addition to the Litigious Abogados family, Abogados Amable & Garcia.

Their website http://www.abogadosamablegarcia.com/ is the same as all the others, except for new photographs of the so called “lawyers”, (probably just downloaded from the images on the web), even the names are variations of the others used. We have yet to see what the paperwork is like and what names appear on those and the emails, somehow we think the “Departmento Legal” will have the same ladies names as all the others.

Yesterday we publish the story about the legal action by the London law firm Edwin Coe, who are representing around 106 clients against Barclays Partner Finance. This case is being held at the High Court in London, it revolves around the issuing of loans for the sale of timeshare as an “investment” by Resort Properties / Silverpoint, with a claim of over £1.5 million.

This article has already prompted a huge response on both sides of the great lake.

On another matter, it would look like that MGM Muthu (formerly Petchy) are being very aggressive in chasing “arrears” in maintenance. Many of these that we are hearing about are those who believed they no longer owned as they “sold” years ago.

These demands are coming from “Customer Services” and signed by Luliia Sulovei. They threaten court action if they are not paid and also demand around £3000 plus the “arrears” to be paid for them to grant a surrender. Most of those contacting Inside Timeshare are elderly and some are widows. This is not a nice situation and in our view amounts to bullying and extortion!

extortion

We will be publishing a full article on this in the next week or so.

Now, on with this weeks Letter from America.

Don and Irene are making their way back home today from Arizona. Irene met many new and old Diamond Advocacy Group friends during her stay and two baby rattlesnakes. (These may have been trainee sales agents). Irene has a degree in biology and said she used to teach a class on reptiles. Irene says she likes snakes and alligators (you would need to to survive a timeshare presentation). Yes, they were rattling.

Irene would like to thank Diamond CEO Michael Flaskey, intervening on behalf of the ailing pool table at Spoke and Wheel restaurant at Los Abrigados in Sedona. Kyli, the restaurant manager, contacted Irene informing her that the antique Brunswick pool table (and I thought Brunswick only made pin spotters) is to be restored to its original glory and another manager, that same day, went out and purchased additional pool sticks (we call them cues). Don and Irene ate at the restaurant. The food was superb. While dining, the Diamond Advocacy Group gained a new member. Many of the guests staying at Los Abrigados are original ILX owners. Now they are Diamond members.

Eron Grant is not a pool table, but she hopes Mr. Flaskey will show her family the same compassion.

Diamond Resorts was a Huge Mistake!

Good choice

By Eron Grant

May 12, 2017

I have asked Inside Timeshare to publish an account of our experience with Diamond Resorts. We hope to warn others to not fall victim to high pressure same day sales and encourage readers to become involved with our Diamond Advocacy Group before buying something they will live to regret later.

We seek to provide Diamond Resort members a way to proactively address membership concerns; to advocate for timeshare reform; to obtain greater disclosure from the company; to advocate for a viable secondary market; and to educate prospective buyers.

https://www.facebook.com/groups/DiamondResortsOwnersAdvocacy/

Many Diamond members are happy with their Diamond membership. I believe if sold properly, Diamond’s vacation program could be of benefit to some families. In our case the program was grossly oversold in terms of availability. The Diamond program will not work for us as we have all the basic timeshare benefits we need as Marriott timeshare owners.

Here’s what happened

We stayed at Diamond’s resort, The Ridge in Sedona Arizona, over Thanksgiving 2016. We booked our stay through Interval International. At the time, I had not heard of Diamond Resorts.

I called the concierge at The Ridge to ask for restaurant recommendations. She said she would get back to me. I thought it odd that a concierge needed to get back to a guest about restaurant reservations.

Later that day the concierge called back asking if anyone had scheduled us for a presentation with a DRI team member. She told me about a few restaurants she thought we would enjoy, adding that Diamond would give us a $150 gift card if we agreed to attend a 90 minute sales presentation. We agreed.

When we arrived we told the sales representative, Karen Calvano, we had a tee time scheduled in a few hours. She seemed irritated and said we would not be finished in that amount of time. Puzzled, we told her the concierge told us the meeting would only take 90 minutes. She wanted to know who told us that. She complained about the tee time when we followed her to the presentation area. She kept saying that she felt rushed going through the presentation. The presentation lasted six hours.

Ms. Calvano told us that Diamond owns numerous properties and that finding something in our local Texas area would not be a problem. We specifically asked about Texas and Louisiana because we are both working and with the kids, we can’t easily fly to take vacations due to the expense and trouble flying entails. We did say we could drive to New Mexico to ski with our kids, and added that we wanted to stay at Great Wolf Lodge.

We agreed to purchase 3500 Diamond points. When I tried to book Great Wolf Lodge, I learned it would take approximately $11,000 in equivalent DRI maintenance fee dollars to stay one week at Great Wolf Lodge when it could be booked online for $3,300. The same holds true for New York City and other big cities because Diamond does not own these properties. They are “affiliated” properties so never discounted.

I recently got in contact with another Diamond member on our DRI Advocacy Facebook group who reported an almost identical complaint. According to a DRI customer service representative, the only property available near Boston was Great Wolf Lodge Fitchburg.

The Fitchburg property was available August 14 – Aug 18 for 16,000 points.

Diamond only had availability for a Deluxe Queen.

Searching the Great Wolf Lodge Fitchburg site directly, Great Wolf had availability for a Wolf Pup Den for four nights for $1429.96 plus 270.31 tax totaling $1700.27.  At $.23 per point DRI maintenance fees, this equals $3,680 in equivalent maintenance fee dollars so $3,680 for the same property, the same week, could be booked directly with Great Wolf for $1700.

Back to our Diamond experience

Ms. Calvano told us we would be assigned the Platinum loyalty level due to being Marriott members. We own a three bedroom Marriott timeshare in Fort Lauderdale, Florida. Therefore, Ms. Calvano said we could book a studio room and upgrade three times at no additional fee. Later we were told this was not true.

As we were leaving, Ms. Calavano said to contact her at any time if we had questions or needed anything at all. I emailed her on December 1, 2016 with a question but never heard back.  

In December 2016 Linda Barton, Member Marketing Agent called us and asked to attend an “orientation for new members”. She said we would learn all about our new membership, and told us to be sure to bring our tablet given to us by DRI. The orientation took place January 13-15, 2017. It was called a Diamond “Once in a Lifetime Event” in Orlando, FL. My husband had asked what this event of a lifetime entailed. He was told we would learn all about our new membership and possible upgrades. “But we just purchased our membership! We are not going to spend any more money,” my husband informed Ms. Barton.

Looking back, we should have suspected the orientation would end up a sales presentation. At the orientation the sales representative, Chris, told us we would only be allowed to upgrade one time at no extra fee. This contradicted what Karen Calvano had initially told us.

Chris said at the orientation we could sell our points back for 30 cents per point if we were platinum, but the brochure we had been provided said it was 10 cents per point. When my husband asked Chris to show us on paper where it said $.30 cents per point, Chris pointed to his handwritten notes to show us where he had written that number down. My husband demanded he show us somewhere in the DRI paraphernalia where it said points could be sold back for $.30 per point, but Chris said, “Never mind if you’re not interested. I don’t want you to have hard feelings.”

Next, we were handed over to another DRI employee who repeatedly said, “I am not sales.” He then proceeded to encourage us to purchase more points, because we could get them at a low cost of $4 something per point which, according to him, was unheard of. The fee to purchase the additional points was over $3,000 with another $4,000 something due in a year or so after that. We turned it down. This ordeal took over 3 hours.

We contacted the Diamond Resorts Advocacy Group at Diamond that promises “to assist Diamond member from Day One should a member have questions or concerns about their purchase!”

Diamond refused to cancel our contract. We filed a complaint with the Arizona Attorney General after learning Diamond had been issued an “Assurance of Discontinuance” as a result of over 400 complaints filed against the company just in Arizona. Diamond automatically denied our claim, but after filing a rebuttal the Arizona AG said we are eligible for consideration.

In response to the Arizona AG action, Diamond has introduced a new program called Clarity that is about Accountability, Transparency and RESPECT for the customer. As far as we are concerned, nothing could be farther from the truth.

Here’s a bit of information about one of our local Texas businesses owned by Jim McIngvale. Mr. McIngvale has owned Mattress Mack since 1981. It is a hugely successful business in Houston.  

Gallery Furniture believes in being on the right side, in other words, to be on the Gallery Furniture customers’ side instead of defending the industry. Advocate for the customers! Gallery Furniture makes it very clear, that we’re here for the Gallery Furniture customers, to better their lives with high quality furniture sold at the best price possible, not to pad the pockets of our manufacturers. Come out to Gallery Furniture TODAY for the best customer service in the business… (August, 2015):

http://www.mattressmack.com/macks_weblog/satisfied-customers/

Mr. McIngvale can be booked for speaking engagements.

Customer care

Perhaps Diamond would like to book him soon?

Thank you Eron for your contribution and another thank you to Irene Parker for coordinating it from the States.

Inside Timeshare welcomes contributions outlining your experiences, it helps other to know that they are not alone. Together you can influence the industry, changing the way they view the owners / members, along with the NTOA, the advocacy facebook pages and this publication you do have a voice. The industry is taking note, we know that for a fact, it is just a matter of time before they actually implement real changes.

All it leaves us to say is we hope that Irene and Don have a safe journey home from vacation, that all of you have a great weekend.

weekend cat

 

abc

The Secret World of Timeshare Sales.

Following on from the many articles on timeshare in the US, Inside Timeshare today publishes the story of a former sales agent with Hyatt and Diamond Resorts. Her story is one that will resonate very clearly with many people who attended timeshare sales presentations, not just in the US but also in Europe, although in Europe it must be said, most of the industry especially Diamond have cleaned up their act. Much of this is down to the adverse publicity in the press and the ongoing litigation in the Spanish courts.

The many sales reps that I personally know and have known through the years are decent and honest people, the problem came in the way the industry was run during the 1980’s, 1990’s and early 2000. It was and still is with some companies, on a commission basis only, you don’t sell, you don’t eat. For many they were also tied into company apartments, so if they did not reach their targets and were fired, they also ended up homeless.

For those who did get a “basic wage”, it was usually twinned with “On Target Earnings”. Again if targets were not met your basic was reduced or not paid. Another factor which is well known in the European model was the so-called “drip feeding”, this was a method by which companies held on to staff who did deal. Basically, the company would tell the rep that the client had not completed, then that pay would be held back, this forced the rep to stay, knowing that if they left they would never get paid.

It was also not uncommon for some unscrupulous companies to claim that the client had cancelled, when in fact they had completed. For some this meant a “claw back” of the pay they had received from the commission and the “spiff” they received for dealing, (the spiff is an incentive payment, paid in cash at the morning meeting the following day).

So it is not difficult to see how normal decent folk would say anything to close the deal. That being said, yes there were and are some who are just out and out “blaggers”, having no sense of conscience or morals. Many companies loved these type of reps, as they would do whatever the managers tell them.

So now to the story of Candace, where she explains her time and experiences as a timeshare sales agent.

Former Timeshare Sales Agents Strike a Blow against Timeshare

By Candace Czarny – February 9, 2017

ethics

Several current and former timeshare sales agents, management and employees have joined forces with timeshare owners to take a stand against timeshare companies, including Hyatt Corp, Westgate, Wyndham, The Manhattan Club, Marriott, Highland Resorts, Sedona Pines and Diamond Resorts.

It’s a modern day David & Goliath story. Timeshare companies employ armies of attorneys in their effort to suppress the seedy side of timeshare. While many owners use and enjoy their timeshare year after year, others fall into deceptive and fraudulent sales presentations ending up with a vacation dream that sometimes turns into a nightmare. Others have called it a timeshare trap.

Now we are beginning to see a powerhouse of attorneys and regulatory agencies on the side of the timeshare consumer in an effort to expose selling strategies that incorporate psychological manipulation, omissions, deceptions, and fraud.

I am a former Hyatt and Diamond Resorts sales agent. While at Hyatt I was advised by management to order a copy of the CIA Guide to Interrogation and Human Manipulation. Some timeshare companies employ these strategies, designed to intimidate and confuse hardworking consumers worldwide, in order to generate profits and earn wildly inflated executive compensation. Honest sales agents, previously able to earn a good living with reputable timeshare companies, find themselves subtly maneuvered out of this new more sinister timeshare business.

Don’t get me wrong, I went to work in the timeshare industry because my family owned one and used it every year.  Our family created unforgettable memories every year using this property.

It was only after working in the industry as a sales agent that I came to see and understand the complicated strategy of greed from the inside.  Like Trish Williams, awarded $20 million in a recent Wyndham Whistleblower case, I am one of the single individuals not willing to be a pawn perpetuating a scam against hard working people trying to create a happy life for their families. Three former Hyatt sales agents are year five into our Whistleblower case.

At some resorts, dramatically rising maintenance fees turn a family’s vacation into a money pit with no way out. Voluntary surrenders are not guaranteed, so owners not able to keep up with annual fees and assessments fall victim to listing and transfer agents. Many owners with loans, not eligible for a “voluntary surrender” are forced into default or must obtain legal help in order to have their timeshare loan cancelled. This just adds to their existing financial burden.

This complex and convoluted strategy for wealth and power is like a hamster wheel. The timeshare company generates profits from selling the same timeshare over and over and over again. To arrive at a solution one must arrive at the cause and in the case of timeshare, the cause begins with corporate greed at the expense of the individual employee and the consumer.

Timeshare companies hide behind carefully and strategically worded contracts intended to shield them from responsibility and litigation. This leaves the owner feeling hopeless and angry with no recourse. Timeshare companies rely on the burdened owner not being able to withstand a costly and lengthy legal battle.

A new age is dawning where individual owners, in partnership with regulatory agencies and lawyers, are banding together to fight back against timeshare corruption.

huddle

The Arizona Attorney General has put a stake in the ground and alleged that Diamond employee’s’ actions and statements violated the Arizona Consumer Fraud Act.

Diamond Resorts Corporation has settled with the Arizona Attorney General for $800,000 in a case involving allegations of customer deception and was issued an “Assurance of Discontinuance” (linked below).  This is just one of an avalanche of lawsuits and investigations exposing a minefield of corruption, fraud and deceit perpetuated at the highest levels of corporate timeshare.

While New York, Colorado, Tennessee and Arizona Attorneys General are making some progress, more needs to be done. There has been a notable lack of concern from many state and federal regulatory agencies. Lawmakers have demonstrated a “Well, they signed a contract” attitude. Such lawmakers have no concept of the depth of deception some timeshare companies go to in order to “close the deal”.

Based on ARDA’s estimates there are over 9,500,000 timeshare units in the United States.  To give you an idea of how profound this corporate culture of greed is and how the courage and bravery of single individuals are making a difference in the name of what is right, listed below are just some of the settlements, judgements and lawsuits against these timeshare giants.

  • Hyatt Corp is sued by three former Hyatt timeshare agents alleging deceit and fraud. They are in year five of a Whistleblower case alleging deceptive practice.
  • Tennessee Attorney General announced a $3 million settlement with Festiva, a network of vacation and timeshare companies, for alleged violations of the federal Telemarketing Act, federal Telemarketing Sales Rule, and the Tennessee Consumer Protection Act.
  • Westgate is facing lawsuits in several jurisdictions and a Consumer Financial Protection Bureau Investigation. Allegations include fraudulent and deceptive business practices ranging from high pressure sales tactics, failure to honor timely rescission requests, elder abuse, illegal debt collection practices and impermissible telephone solicitations.” The Capitol Forum June 27, 2016
  • Colorado Attorney General  is suing Highlands Resort, Sedona Pines and twelve other defendants for deceptive trade practices.
  • Former Wyndham sales agent Trish Williams was awarded $20 million for exposing deceptive sales practices in a Whistleblower case.
  • The NY Attorney General investigation into the Manhattan Club is proceeding. The motion to dismiss a currently pending class action suit has been adjourned to March 31, 2017 because the sponsor appears to have engaged new counsel, Gibson Dunn – the third set of sponsor attorneys in this matter. This motion is for request to release monies previously frozen by court order to pay the sponsor’s attorney’s fees.
  • The Marriott racketeering lawsuit as of February 7, 2017 is still waiting for a decision on motions to dismiss and is engaged in discovery, according to attorney Jeffrey Norton.
  • In Spain there are approximately 800 live cases in various courts and over 2000 clients. The total claim value is around 80 million Euros, These cases are being brought by Canarian Legal Alliance.
  • A billion dollar lawsuit has been filed against Diamond Resorts International.
  • Arizona Attorney General´s $800,000 settlement with Diamond Resorts International.  Arizona Attorney General Mark Brnovich is working on the front end to stop outrageous oral representations.

If you feel you are a victim of deceitful timeshare sales or are an employee whose livelihood has been threatened by refusing to participate in deceptive and fraudulent tactics, I encourage you to tell your story. Alone we perish under the weight of power and greed. Together we can overcome and thrive.

Diamond timeshare owners worldwide, who purchased a timeshare in Arizona since 2009, have until the end of April 2017 to file a claim of relief with the Arizona Attorney General’s office.

Instructions on how to file a complaint are included in this press release:

https://www.azag.gov/press-release/attorney-general-brnovich-announces-800000-settlement-diamond-resorts

Thank you Candace for writing this article, Inside Timeshare welcomes articles from anyone with a similar story, or even from those who have been on the receiving end of the sales presentation. It through these article we might just see a change in the industry that will benefit not just the consumer but the industry as well.

For information about pending litigation or questions on how to file a complaint, contact Inside Timeshare either through email, by posting a comment, or finding us on Facebook. Please state if it is a US or European timeshare. We’re here to help.

https://www.facebook.com/insidetimeshare/

3 men

 

end-year

2016 End of Year Review

So here we are at the end of another year and what a year it has been, it started with the relaunch of Inside Timeshare, bringing you truthful information and news you would otherwise not get.

One of our first articles explained what fly buys are, the fact you would get a cheap holiday but be subject to attending a presentation. At this you would be pitched a holiday product of some sort, be it a holiday club or timeshare. The article also warned of the pitfalls of not attending the presentation, either being charged the full accommodation price and in many cases being removed from the resort.

We also highlighted many “scams” that timeshare owners have been subjected to over the years including many new ones. The latest being the article on Litigious Abogados (see links). We also showed how some of the so-called resale companies operate, giving you the reader the information to make an informed choice.

http://insidetimeshare.com/1059-2/

http://insidetimeshare.com/litigious-abogados-update/

http://insidetimeshare.com/litigious-abogados-latest-information/

CLA Logo

Another theme Inside Timeshare published was the on-going woes of Anfi, the first article titled: “The Great ANFI Battle of the Partners”, explained the story of the two partners in the Anfi empire, the Lyngs and the Cazorlas. We then published the story of legal history being made with the very first Supreme Court ruling, this was the case of the Norwegian lady, Mrs Tove Grimsbo and her battle with Anfi. The case was brought on her behalf by Canarian Legal Alliance.

Since that auspicious occasion, Canarian Legal Alliance has gone from strength to strength, securing 36 rulings from the Highest Court in Spain, 29 of these have been against Anfi. Others have been against TasolanPalm Oasis and Holiday Club Puerto Calma, with the ruling against Puerto Calma confirming the Fractional did indeed come under Timeshare Laws. This resulted in around 243,000 Euros being returned to a British client.

There have also been 24 High Court and 21 Local Court rulings against various timeshare companies including Resort Properties / Silverpoint and Club La Costa. Some of these Courts have been in Maspalomas, Arona, Barcelona and Fuengirola. There are approximately 800 live cases in various courts and over 2000 clients. The total claim value is around 80 million Euro, with 117.208.00 Euros reclaimed per month, there are on average 2 to 3 cases per week being heard.

(These figures are what we have on file, there have obviously been more cases, but we have yet to receive an update).

This is certainly an impressive achievement by this law firm, who has in the past suffered from some very negative press instigated by the industry itself. Inside Timeshare congratulates the whole team at Canarian Legal Alliance, including the clients who in some cases have waited years for these results.

Another series of articles have been about MacDonald Resorts and the ongoing battle of Mrs B, now known as Mrs Price. It is a case that has riled us at Inside Timeshare, who are fighting on her behalf. The story revolves around MacDonald Resorts refusal to accept that she no longer owns a timeshare at Dona Lola in Spain, continuing to harass this 87 year old via a debt collecting agency Network Credit Services. This harassment has included threats of court action to recover a debt that is not owed, this case has been referred to the Financial Ombudsman Service. Inside Timeshare will continue to highlight this case until MacDonald Resorts abandon the chase for money. It must also be noted that the RDO, which is the industry trade body has also washed their hands of this company.

In the April article “The Resurrected” a warning was issued about an old company from Fuengirola had come back to life. It is the story of Ramirez and Ramirez, who several years ago were very active in deceiving many timeshare and holiday club members out of thousands for bogus claims. It must be said that very little has been heard of them since.

Mark of excellence

We have also had a few light hearted moments, although they did come with a serious message. In the spoof article “A New Member to EGTBW”, it explained about the trade bodies for the timeshare industry operate. This was extremely fun to write and gave many people a good laugh, the only problem was that it was actually based on fact.

http://insidetimeshare.com/new-member-egtbw/

Back in July we started to publish the ongoing story of the Tauro Beach Project, the fact that irregularities had been uncovered and an investigation had been started by the Guardia Civil Nature Protection Service (SEPRONA). As the story unfolded the Head of The Canarian Coastal Authority had been dismissed and is now awaiting trial for wrong doing in public office and forgery of official documents. Then in August we published the story of the local inhabitants and their homes being flooded, this instigated further investigations which also include the local mayor. The story continues. (search Tauro Beach for further information).

We also teamed up with Irene Parker in the United States, she has provided some valuable information and interesting articles on the world of timeshare across the Great Lake. Below is her latest article.

What Timeshare Owners Can Look forward to:

Timeshare Lawsuits 2017

By Irene Parker,  December 26, 2016

2017

Our Inside Timeshare mission is to offer timeshare owners accurate reporting on both the good and bad aspects of timeshare today. While we admit we bear more to the negative side of timeshare reporting, this thirteen page report from the US Department of Justice listing timeshare scams explains why:

https://search.justice.gov/search?query=timeshare+fraud&op=Search&affiliate=justice

The other reason is because the industry is not well regulated. Timeshare owners do not have the level of organization or funds necessary to compete with timeshare developer lobbyists. Lobbyists used to primarily direct their efforts towards influencing lawmakers, but more and more efforts are now being directed towards influencing US Attorneys general:

https://www.nytimes.com/2014/10/29/us/lobbyists-bearing-gifts-pursue-attorneys-general.html

Looking to 2017, we need to look back and reflect on timeshare’s unresolved and continuing legal battles. Timeshare developers, former timeshare sales agents and  solicitors, timeshare owners, federal and state regulators and advocates continue to weigh in on possible changes that will make timesharing more owner friendly and less predatory.

Will the final piece of this legal and regulatory puzzle result in a less aggressive and deceptive industry – or will practices continue unabated and unchecked resulting in more of the same?

round-table

Westgate

Westgate is facing lawsuits in several jurisdictions and a Consumer Financial Protection Bureau Investigation. Allegations include fraudulent and deceptive business practices ranging from high pressure sales tactics, failure to honor timely rescission requests, elder abuse, illegal debt collection practices and impermissible telephone solicitations.” The Capitol Forum June 27, 2016

https://www.buzzfeed.com/matthewzeitlin/financial-regulators-are-looking-into-americas-largest-times?utm_term=.pbyQ8MPbx#.pmA2BeVyM

Colorado Attorney General

Colorado Attorney General Cynthia H. Coffman is suing Highlands Resort, Sedona Pines and twelve other defendants for deceptive trade practices.

Another US Attorney General Exposes Deceptive Tactics.

Wyndham $20 Million

Former Wyndham sales agent Trish Williams was awarded $20 million for exposing deceptive sales practices. While the amount will probably be reduced on appeal, it sends a message that courts and juries are listening.  http://www.nytimes.com/2016/11/25/business/my-soul-feels-taller-a-whistle-blowers-20-million-vindication.html?_r=0

Hyatt

Candace Czarny and two other former Hyatt timeshare agents would like to see the industry improved. They are in year five of a class action alleging deceptive practice.

http://insidetimeshare.com/whistleblowers-expose-timeshare-sales-tactics/

The Manhattan Club

Attorney Douglass Wasser represents 30 Manhattan Club defendants.

“To my knowledge there has been no dismissal of any Manhattan Club proceeding at this point.  The NY Attorney General investigation is proceeding, and the motion to dismiss a currently pending class action suit has been adjourned to January 5, 2017 for now. Three prior class action suits at the Manhattan Club have been dismissed.  But, at least for the time being, the current class action still survives,” Mr. Wasser reported November 15. 2016

http://www.reuters.com/article/manhattan-club-ruling-idUSL1N18U0DL

Marriott Racketeering

“The Marriott racketeering lawsuit seeks to abolish Marriott’s points program, which attorney said is unique among timeshare companies. It also seeks the return of fees and costs paid by buyers.” Paul Brinkmann reported October 13, 2016 for the The Orlando Sentinel.

 http://www.orlandosentinel.com/business/brinkmann-on-business/os-marriott-timeshare-racketeering-20161013-story.html

Diamond Resorts

A recent class action was filed against Diamond Resorts:

https://topclassactions.com/lawsuit-settlements/lawsuit-news/348667-diamond-resorts-class-action-high-pressure-timeshare-sales-deceptive/

Matt Daniel Finazzo, et al. v. Diamond Resorts International Club Inc., Case No. 5:16-cv-02256, in the U.S. District Court for the Central District of California.

holidays-are-hereI don’t mean to be the Grinchess that stole Christmas, so to end on a positive note,

People are listening!

Charles Thomas and I are hearing from people all over the world who are joining forces to work towards:

  • A legitimate secondary market
  • Less aggressive and deceptive selling
  • Less predatory lending

Thank you from timeshare owners to our regulators and lawyers working to protect us. Human leverage and a clearinghouse of information exchange is the answer.

inside final small

So that is the end of 2016, we hope you will join us in 2017 and also help us to get the news out to others. Without your information many of the articles, particularly on possible scam or bogus companies will not be published. So from the Charles and Irene, we wish you a very happy and prosperous New Year.

happy-new-year

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